Estee Lauder Companies Inc (EL)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 772,000 | 1,397,000 | 3,029,000 | 3,319,000 | 1,034,000 |
| Revenue | US$ in thousands | 15,298,000 | 15,699,000 | 17,552,000 | 16,007,000 | 14,164,000 |
| Pretax margin | 5.05% | 8.90% | 17.26% | 20.73% | 7.30% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $772,000K ÷ $15,298,000K
= 5.05%
The pretax margin of Estee Lauder Companies Inc has shown a declining trend over the past five years. In the most recent fiscal year ending on June 30, 2024, the pretax margin stood at 5.05%, significantly lower than the previous year's value of 8.90%. Moreover, this figure represents a notable decrease from the highest point observed in the last five years, which was 20.73% in June 2021.
The downward trend in pretax margin indicates a potential decrease in the company's profitability before accounting for taxes and other expenses. This decline can be concerning as it may suggest challenges in managing costs, increasing revenues, or both. Investors, analysts, and stakeholders may view this trend as a sign of weakening financial performance that warrants further investigation and strategic actions to improve profitability.
Peer comparison
Jun 30, 2024